Shares of Gulf Oil Lubricants soared 5 percent to Rs 1,232 in the afternoon of December 24 after the company announced it has entered into a partnership with Nayara Energy, India's largest private fuel retailer, to make Gulf's entire automotive product range available across Nayara network of over 6,500 fuel retail outlets nationwide.
This strategic alliance is part of a 3-year contract leveraging Nayara Energy's reach to
further strengthen Gulf Oil's brand presence and product availability to cater to the expanding automotive market, particularly along the country's rapidly developing highway infrastructure in India.
Follow our LIVE blog for all the latest market updates
Under the partnership, Gulf Oil’s AdBlue, a premium diesel exhaust fluid designed to cut harmful emissions, will be the exclusive AdBlue product available across Nayara Energy’s retail network. Additionally, the collaboration includes a specialized range of two-wheeler batteries, broadening the offerings for both companies in the expanding market. Gulf Oil, which already has an extensive distribution network for AdBlue, will further strengthen its reach through this alliance.
"This collaboration underscores the growing demand for quality automotive products and lubricants owing to the burgeoning infrastructure growth and both Gulf's and Nayara Energy's commitment to making our products accessible, ensuring that our customers receive quality lubrication solutions wherever they are in India," Gulf said in a regulatory filing on December 24.
Also read: Quick, Quicker, Quickest! Not just groceries, your food is also just minutes away
In September, Systematix initiated a "Buy" rating on the stock. The brokerage highlighted that Gulf Oil’s market share in the lubricants segment is expected to grow consistently, supported by the company’s strategic entry into the electric vehicle (EV) segment and DC cooling liquids. These initiatives are seen as key drivers for long-term growth.
Systematix projects that Gulf Oil’s overall volumes will outpace the industry, forecasting a compound annual growth rate (CAGR) of 11 percent between FY24 and FY27. The brokerage also estimates a robust revenue CAGR of 9.7 percent, EBITDA CAGR of 12.6 percent, and PAT CAGR of 14.6 percent over the same period. Gulf Oil’s financial metrics are expected to remain strong, with return on equity (ROE) and return on capital employed (ROCE) projected at a healthy 27 percent.
Read more: Govt has done its bit, time for corporates to chip in on capex: Axis Bank's Amitabh Chaudhry
At about 12:30 pm, shares of the company were trading at Rs 1,216, higher by 4 percent from the last close on the NSE. Gulf Oil Lubricants India shares have rallied 70 percent since the start of the year.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
